Skip to main content
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HLTH 2024
    • Sponsored Content: Vital Signs Blog
  • Opinion
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • 40 Under 40
    • Best Places to Work in Healthcare
    • Healthcare Marketing Impact Awards
    • Innovators Awards
    • Diversity Leaders
    • Leading Women
    • Best in Business Awards
    • The 2030 Playbook Conference
    • Innovations in Patient Experience
    • Leading Women Conference & Awards Luncheon
    • Leadership Summit
    • Workforce Summit
    • Best Places to Work Awards Gala
    • Diversity Leaders Gala
    • - Looking Ahead to 2025
    • - Financial Growth
    • - Hospital of the Future
    • - Value Based Care
    • - Looking Ahead to 2026
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Skilled Nursing Facilities
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
    • Sponsored Content
MENU
Breadcrumb
  1. Home
  2. Finance
July 29, 2015 12:00 AM

Henry Schein earnings stagnate despite surging medical sales

Adam Rubenfire
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Medical supplies sales to physician offices continue to be a strong business for Henry Schein Inc. It is growing significantly faster than its mainstay animal health and dental businesses, which are being hit hard by foreign currency exchange rates.

    The Melville, N.Y.-based company reported earnings of $117.9 million in the second quarter, up just 1.5% from $116.2 million the same period a year ago. Sales rose marginally to $2.63 billion, up just a half percent from $2.62 in second quarter sales last year.

    The results would have been much worse had Henry Schein not racked up $470.5 million in sales in its fast-growing physician office supply business, up 16.7% from $403.3 million a year ago.

    This business is booming in part because of Henry Schein's partnership with Cardinal Health, which allowed it to handle the company's physician office-focused customers. Schein Chief Financial Officer Steven Paladino said during a conference call that a majority of the Cardinal customers have been transferred to Schein and integration will likely continue through most of the third quarter.

    CEO Stanley Bergman said suppliers that want to sell to large group practices and integrated delivery networks need the software and “economies of competency” that Henry Schein brings to the table. “We see even further consolidation in this marketplace with fewer distributors,” Bergman said. “Stronger distributors and distributors who have the software and information intelligence to service these accounts" will survive.

    Unfavorable foreign exchange rates took their toll on Henry Schein's traditional dental and animal health distribution businesses during the quarter. Medical sales, which largely originate from North America, were less affected.

    Dental sales, traditionally the company's strongest business, declined 3.5% to $1.3 billion. The company attributed this to an 8% decline related to foreign currency exchange that offset 4.5% local growth.

    Practice-management software and financial services, with $89.5 million in sales in the second quarter, grew just 0.4%. A 2.9% decline in foreign exchange values negated 3.3% local currency growth.

    The company's second-quarter earnings included a $7.2 million restructuring charge. Henry Schein has spent $14.1 million on restructuring this year to rationalize operations and cut costs.

    In the conference call, Schein affirmed previous 2015 guidance of adjusted diluted earnings per share of $5.90 to $6, about 8% to 10% higher than last year. That guidance excludes about $0.29 to $0.33 per diluted share in restructuring costs.

    Like last quarter, the company announced that it has repurchased common stock, this time buying 267,000 shares at an average price of $140.58 per share, or about $37.5 million. At the close of the quarter, the company had $187 million in remaining authorization for future share repurchases.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    CommonSpirit-0924
    Higher patient volumes at CommonSpirit don't offset losses
    tariffs-healthcare-money-finance-0225
    How health system CFOs are navigating the growing uncertainty
    Most Popular
    1
    UnitedHealth under criminal investigation for Medicare fraud: WSJ
    2
    States, providers face brunt of GOP Medicaid cuts plan
    3
    UnitedHealth Group to cut Medicare drug plan commissions
    4
    Federal dementia pilot has rocky rollout for some providers
    5
    'Legendary' Hemsley takes over at UnitedHealth amid rough seas
    Sponsored Content
    Daily Finance Newsletter: Sign up to receive daily news and data that has a direct impact on the business and financing of healthcare.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HLTH 2024
      • Sponsored Content: Vital Signs Blog
    • Opinion
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • 40 Under 40
        • Best Places to Work in Healthcare
        • Healthcare Marketing Impact Awards
        • Innovators Awards
        • Diversity Leaders
        • Leading Women
        • Best in Business Awards
      • Conferences
        • The 2030 Playbook Conference
        • Innovations in Patient Experience
        • Leading Women Conference & Awards Luncheon
        • Leadership Summit
        • Workforce Summit
      • Galas
        • Best Places to Work Awards Gala
        • Diversity Leaders Gala
      • Virtual Briefings
        • - Looking Ahead to 2025
        • - Financial Growth
        • - Hospital of the Future
        • - Value Based Care
        • - Looking Ahead to 2026
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Skilled Nursing Facilities
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing
      • Sponsored Content